You are a small feedlot owner. You have 250 steers that you are feeding that you expect to slaughter in late November. They should weigh 1250 pounds at slaughter. You want to hedge about half of these steers. Create a trade for the CME in a word document. Date, contract size, and long or short.(Hint: the Live Cattle contract is for slaughter cattle and each contract is 40,000 lbs.)

You have enough corn on hand to feed these steers. However, after you sell them in November, you will be buying more calves to feed and you need to buy corn for them. You want to protect against possibly higher corn prices by executing a long hedge. (Assume you need 15,000 bushel of corn, three contracts.) Do the same for this contract, date, size and long or short, in the same document.